The present invention relates to a system and method for operating two interacting accounts through a bank data processing computer, wherein the number one account holder is a parent or similar authorized person and the number two account holder is a student or similar authorized person.
There are prior automated banking methods that provide for interaction between multiple cards of a single bank account and multiple accounts that are tied together for transfer of credit from one to the other, and similar functions. In the past, these systems have worked with some degree of success, most notably where the single account operates in conjunction with multiple credit cards.
A prevailing theme in the prior art systems of this type is to have the number one account holder, such as a corporate officer of an employer, a parent or the like, dominate the ancillary card user, including in terms of spending limits. Usually, not only is the amount of spending controlled, but also other parameters, such as the number of expenditures per month and the nature of the products/services that can be purchased, are monitored for approval or disapproval. Depending on the number of parameters included, the dominant account holder can control each and every important aspect of the account(s). In some instances, even access to each monthly bank statement covering such account activity may be off-limits to the ancillary card user. One example of this type of credit card spending control by the dominant account holder of an ancillary card user is shown and described in U.S. Pat. No. 5,914,472, issued Jun. 22, 1999.
Another feature of these banking systems is the concept of communicating in real time with the dominant or number one account holder, such as the president of the corporation, to determine if the account holder approves and authorizes the expenditure being attempted by the subservient card user. This approach is illustrated and described in an earlier U.S. Pat. No. 5,708,422, issued Jan. 13, 1998 and owned by the same corporation as the '472 patent. As an additional feature, in the event that the dominant account holder does not respond within a given time to authorize the expenditure, the bank database computer is programmed to automatically authorize the expenditure.
In still another approach, U.S. Pat. No. 5,953,710, issued Sep. 14, 1999 separate credit or debit cards are set up for the subservient account holder and the dominant account holder. This banking system is disclosed in particular for linking a child's activity as the subservient holder with the parent's account, as the dominant holder. The number one or dominant holder sets the credit and debit limits of the child, and participates in at least some of the other banking activities of the child. Furthermore, the dominant account holder or parent is provided with the full bank statement of the account. As a consequence, the subservient account holder/child is denied any independence and privacy of his/her banking activity.
A serious shortcoming is thus prevalent with these prior art dominant/subservient banking systems, especially with regard to a situation involving joint parent and student accounts. Either when there is a single account and multiple cards, or where two accounts are used, the parent domination is present. This domination is particularly unpalatable when it comes to providing the parent a complete print-out of the student account at the end of the month.
In order to foster a better relationship between student and parent, as well as providing a better atmosphere for training the student to deal with their own finances, it is contemplated that the student should have at least some basic privacy of their own account. The only exception should be where the credit limit has to be raised based on an unexpected need or emergency, and the funds for such a particular expenditure or purchase is to be withdrawn from the parent account. It is also important that each account remain separate to obtain the maximum training benefit for the student, building of self-esteem and self-reliance and generally providing a continuation of a congenial atmosphere within the family of the student.